Special Liquidity Facility for Mutual Funds (SLF-MF)-2

•It means that RBI will lend money to banks at current repo rate of 4.4%.
•Funds availed under the SLF-MF must be used by banks exclusively for meeting the liquidity requirements of MFs byo extending loans to MFs
•Uundertaking outright purchase of repos against the collateral of investment grade corporate bonds, commercial papers (CPs), debentures and certificates of Deposit (CDs) held by MFs.